The geochemical investigation of sediments deposited in the Renuka Lake basin and its adjoining wetland has shown variation in the distribution and concentration of major, trace and REEs. The major elements are depleted in the lake in relation to wetland and that of Post Archaean Australian, Shale (PAAS), except for CaO which is strikingly in excess and has a dilution effect on SiO2 and other oxides and trace elements. The Wetland sediments, on the other hand, are enriched in Al2O3, Fe2O3, K2O and TiO2 and the latter three show a positive correlation with Al2O3 in both wetland and lake sediments suggesting their association with phyllosilicates and similar source rocks. The enrichment of Y, Zr, Ni, Th, U and Nb in wetland compared to lake and their similarity with PAAS in the former, suggests more clay fractions in the wetland.